NOW, SMEs can raise funds through NSE/BSE

Now, SME Business Owners in India can raise funds with their IPOs on NSE and BSE!

This is the latest message from the Securities and Exchange Board of India (SEBI), which announced its decisions through its Press Release “PR No.344/2009”.

NSE and BSE will now be allowed to set-up SME trading platform, which would have lighter eligibility norms for companies initiating public offers: Clause 49 still needs to be complied with, and SMEs can prepare and present financial results on a half-yearly basis (instead of the quarterly requirement).

Other exemptions include diluting the profitability track record requirement and Takeover Code regulations.

Minimum IPO application size: Rs. 1 lakh

Minimum trading lot: Rs. 1 lakh

Upper limit for paid up capital for listing on the SME exchange : Rs. 25 crore

Further, it said companies listed on the SME platform would be exempted from the eligibility norms for initial and follow-on public offers. While norms related to Clause 49 of the listing agreement will have to be complied with, SMEs have been exempted from quarterly preparation and presentation of financial results to keep their compliance costs low. Instead, accounts will have to be prepared and presented on a half-yearly basis